New Delhi, March 5 (IANS). The impact of Israel-America-Iran war and increasing tension in the Middle East is now visible on India’s gas supply. Government gas company GAIL (India) Limited has said that the supply of liquefied natural gas (LNG) from Qatar has completely stopped at present. The company has warned that if the situation continues like this, gas supply to downstream customers may have to be cut.
The company said in an exchange filing that its long-term supplier Petronet LNG Ltd (PLL) has issued a force majeure notice on March 3. The move was taken as the movement of LNG vessels between Qatar and India is being hampered due to maritime navigation restrictions in the Strait of Hormuz. Apart from this, the LNG liquefaction plant located in Ras Laffan, Qatar has also been closed.
Petronet’s upstream supplier Qatar Energy has also reported a potential force majeure situation due to the recent military confrontation in the region, according to the filing. For this reason, the LNG quota given by Petronet to GAIL has been reduced to zero from March 4, 2026.
GAIL has said that it is assessing the situation and may take a decision to cut gas supply to its customers if needed. However, the company also clarified that LNG supplies from other sources have not been affected at present. The company is constantly monitoring the situation and will keep informing the stock market about any major updates.
GAIL operates about 11,400 km long natural gas pipeline network in India and has about 75 per cent market share in the gas transmission sector in the country. This network connects multiple gas sources to large industrial consumers and other customers.
Due to increasing tension in the Middle East, the global energy market is also witnessing movement. Spot LNG prices in Asia softened slightly on Thursday after reaching near three-year highs. Spot LNG prices in Asia fell to about $23.80 per million British thermal units, still more than double from last week, according to traders.
This surge in the energy market came at a time when the US and Israel launched a joint air strike on Iran, in response to which Iran launched missile and drone attacks in the Gulf region, after which concerns over oil and gas supplies in the region have increased.
The market is most concerned about the Strait of Hormuz, which is a very important sea route connecting the Persian Gulf to the Arabian Sea. Through this route, a large amount of oil and gas from the Middle East is supplied to the world.
According to reports, operations at Qatar’s Ras Laffan LNG plant (the world’s largest LNG export plant) have also been halted. Additionally, some LNG tankers have diverted from Europe to Asia, further intensifying competition for supply.
Experts believe that if tensions in the Middle East continue for a long time, the global energy market may become even more unstable, which may also affect import-dependent countries like India.
–IANS
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